Stock Performance
Constellation Energy stock surged by 12% to $149.59 in Tuesday trading, marking its largest increase since July 28, 2022. Over the past year, the stock has soared approximately 100%, while the S&P 500 saw a decrease of 0.1% on Tuesday.
Guidance and Dividend Boost
Despite reporting a quarterly loss, investors were optimistic about Constellation’s outlook. For the full-year 2024, the company expects adjusted earnings between $7.23 and $8.03 per share, exceeding Wall Street’s forecast. They also anticipate at least a 10% per-share earnings growth in the long term. This growth is supported by the nuclear production tax credit in the Inflation Reduction Act and effective cash flow deployment.
CEO’s Optimism
CEO Joe Dominguez expressed confidence in Constellation’s future, emphasizing the company’s commitment to clean, reliable energy. He stated, “No U.S. company is better positioned to deliver on that promise than Constellation.”
Dividend Growth
In a positive move for investors, Constellation announced a 25% increase in its dividend per share. The company’s board of directors declared a quarterly dividend of $0.3525 per share on common stock payable on March 19.
Stock Repurchase Plans
Last year, Constellation completed a $1 billion stock repurchase plan and approved another $1 billion repurchase in December. These initiatives demonstrate the company’s commitment to enhancing shareholder value.
Despite a challenging quarter with a reported per-share loss and missed sales expectations, investors remain optimistic about Constellation Energy’s future prospects.